Planning Your Custom Build Around High Lumber Prices
What does the record high price of lumber mean for your home building plans?
By now, you know that the cost of lumber has skyrocketed. Whether you know someone in construction, you’re actively planning your own home build, or you just watch the news, you’ve probably heard talk of expensive lumber throwing off processes and price points nationwide. So, what’s going on, and what’s the best course of action?
What’s happening?
The price of lumber has seen a drastic spike since its record low in April 2020. Now, the price has increased by 500% since 2020’s low.
That price hike means many home builders have had to slow production, which comes at an already-tense time of skewed supply and demand. There’s a drastic shortage of existing homes considering the level of demand triggered by low mortgage rates and shifting lifestyles.
Because builders have to pass increased materials costs on to buyers, this development means an even further hike in the average cost of buying a home, which is already sitting at a record high due to the competitive market.
Why is this happening?
In April 2020, when worldwide economies struggled and demand for lumber took a hit, many predictions indicated a housing market slump in the near future. In response, sawmills shut down lumber production for a time so as not to overproduce for a struggling market.
Instead, the housing market boomed and demand for homes - therefore, lumber - shot through the roof. Now, there’s simply not enough to go around.
What now?
The lumber shortage is taking a toll on builders nationwide. Homes become less and less affordable as the price of materials shoots increasingly higher.
Without proper planning and a clear view of costs, people looking to build a new home run the risk of paying much more in the end than they’d originally planned or budgeted for. It’s not for lack of trying; that planning isn’t straightforward, especially with the rapidly-changing relief efforts and changes in supply.
Fortunately, Atmos clients reap the benefits of our close work with industry experts who can provide insights and advice when it comes to budget, building materials, and overall vision. Without spending your time sifting through prices and projections yourself, you stay in the driver’s seat in determining your spending and your priorities.
Working with your project manager allows you to take in your options and decide what you want and need most in your custom build, without unexpected price spikes.
Ready to get started on the house of your dreams? Begin your homebuilding journey with Atmos today, and plan with our experts for ease and peace of mind, every step of the way.
